Firms have considerable flexibility as to how they report other comprehensive income each period.Under U.S.GAAP, they can include
A)it with net income in a single statement of comprehensive income.
B)it in a separate statement of other comprehensive income that is one of the notes to the financial statements.
C)it in a statement of changes in shareholders' equity.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

Firms have the option to report other comprehensive income (OCI) in any of the three possible ways mentioned in options A, B, and C. Therefore, the best choice is D, i.e., all of the above. Companies can include OCI in a statement of comprehensive income which combines net income and OCI, or in a separate statement of other comprehensive income that is disclosed as a note to the financial statements, or in a statement of changes in shareholders' equity that also shows other equity transactions during the period.

Firms Have Considerable Flexibility as to How They Report Other